Real Estate Mastery: Smart Investment Moves with $1.2 Million

Question: 

I'm keen to dive into today's real estate market and have ample cash at my disposal with a budget of 1.2 million. Embracing the role of a real estate investor excites me, but the pressing query is: where do I begin? While I currently possess several single-family homes that I rent out, given the prevailing interest rates and stagnant purchase prices, I find myself at a loss as to how to kickstart a property search.

Answer:

I believe the most advantageous strategy for your next financial move would entail:

1. Deploying your cash to provide financing for a Construction loan or % of equity, whether on one of your own properties or to others in the market (REITs, or real estate investment trusts) own or finance income-producing real estate across property sectors, with minimal hassle or effort required.

2. Investing at minimum into a Side by Side duplex, preferably on broader lot size, which will offer various options for future use and include 3+ exit strategies.

In today's dynamic market, it's crucial to have contingency plans (Plan A, B, C) to maximize equity gains and navigate uncertainties effectively, both in the short and long term. It seems to me that flexibility is a key consideration for you.

Based on a budget of 1.2 million or lower, at a minimum , a side by side duplex for instance,  presents compelling opportunities. Despite being under one single title, it comes with two units, each fetching $2500 plus utilities (average for a semi in Ottawa). The rental potential is excellent, and in case of tenant turnover, re-renting a renovation to increase rents is very easy to achieve at a relatively  low cost. Additionally, with the right approach, there's potential to comfortably add One or two more units.

Often with future considerations in mind, these properties could further amplify its value based on building out into the backyard. As zoning regulations evolve, the potential for increased density could unlock significant development opportunities, particularly considering the property's larger lot size common among side-by-side duplexes.

Given your available capital and personal interest in real estate, these opportunities offer substantial value by taking a traditional approach to ‘sitting on real estate.’ If I were in your shoes, this is precisely the path I would explore. Do what most people don’t think of and find a sweet spot to invest in your future with less competition. 

Let’s explore your thoughts on this. Let’s chat!